With the end of the summer, a seasonal volatility pickup in September/October arrived right on time over the past few weeks. Central banks remain at the epicenter of market trends with accommodative policy set to remain despite a recent spike in bond yields. Continued patience from the Fed and clear signaling that the interest rate hiking cycle will be very shallow should keep the USD range-bound and maintain global market tailwinds. Other major central banks staying with ultra-loose monetary policy and signs of firming Chinese economic activity are also supporting the global economic recovery. Remaining economic slack, a very low level of interest rates and the shape of the yield curve suggest economic cycle risks remain modest over the coming year. However, geopolitical risks (driving near-term market volatility) looks to remain elevated into year-end as U.S. November elections take centre stage with the first presidential candidate debate set for Monday September 26th a key near-term focus.
What is the difference?
September 20, 2016
There’s an old adage from vaudeville that goes like this: A comic says funny things; a comedian says things funny. While I sometimes think this is a distinction without a difference, the gulf separating an investment advisor from a wealth advisor is actually both considerable and significant. Let me explain.
An investment advisor is someone whose primary professional focus is on portfolio performance. The client of an investment advisor can expect to hear a great deal of discussion about how their portfolio consists of a careful combination of different asset classes – such as fixed income, equities and cash – structured in a way to reduce risk while potentially increasing returns.